© 2009 Global Knowledge Training LLC All Rights Reserved. © 2009 Global Knowledge Training LLC All Rights Reserved

Project Management Concepts
According to the PMBOK Guide

Guide, what is
project management?

Guide, what is a
program?
2009 Global Knowledge Training LLC All rights reserved.

Guide, what is a
portfolio?

Guide, what is a
PMO (project management office)?
Chapter 2
A group of related projects managed in a

coordinated way to obtain benefits and
control not available from managing them
individually.
Chapter 2
An organizational
g
unit to centralize and
coordinate management of projects under its
(the PMOs) domain.
Chapter 2
The application of knowledge, skills, tools and

techniques to project activities to meet project
requirements It is accomplished through the
requirements.
use of the five overarching Process Groups
(Initiating, Planning, Executing, Monitoring
and Controlling, and Closing).
Chapter 2
A collection of projects or programs and other

work that are grouped together to facilitate
effective management of that work to meet
strategic business objectives.
What is a constraint?
What is a project stakeholder?
What is a project management system?
What are the stages of a product life cycle?
Chapter 2
Any person or group of people who have an

interest in the project,
project are involved in the
project, or could impact or be impacted by the
project.
Chapter 2
Introduction
Growth
Maturity
Decline
Chapter 2
Any
y restriction or limitation that will affect the
performance of the project, or even affect
when an activity can be scheduled.
Chapter 2
A project-based set of tools and techniques,

processes and procedures,
procedures control systems
and methodologies that any project manager,
PMO, or organization can take advantage of.
What is the benefit of portfolio management?
Concepts
Concepts
When does the life cycle of a product or

service begin?
What are common characteristics of project

life cycles?
Concepts
What are some examples of project

stakeholders?
Concepts
Chapter 2
The phases are sequential in nature.
They embrace the transfer of technical
information from one phase to another as
necessary.
g levels usually:
y
Costs and staffing
Are low at the beginning
Peak somewhere in the middle phases
Drop off rapidly toward the end
Chapter 2
Customer or end user

Sponsor
PMO (project management office)
Project manager
Project team
Functional managers
Operations management
Senior management
I fl
Influencers
Performing organization
Chapter 2
Better alignment of projects and programs

with organizational objectives
objectives, with the goal
being to maximize the value of the entire
portfolio.
Chapter 2
At its conception; it ends with its closure. This

cycle can begin with an assessment of the
product or service from a business
p
perspective (business need and benefit);
continue with the hand off to operations, and
end with the discontinuation or completion of
the product or service.
What are four types of organizational

structures?
What is another name for a functional

organization? How is it organized?
Concepts
Concepts
What are the organizational characteristics of

a functional structure?
Concepts
structure who
In a projectized organizational structure,
does the project team report to?
Concepts
Chapter 2
The traditional organizational structure

It iis organized
i d around
d a ttraditional
diti
l hi
hierarchyh
type of work environment with clear vertical
chain of command and the grouping of human
resources by area of specialization.
Chapter 2
Functional (also called traditional)

Matrix (weak, balanced, strong)
Projectized
Composite
Chapter 2
Chapter 2
Functional Organization
Only one boss: the project manager
Project manager
authority
Little or none
Resource availability
Little or none
Budget controlled by
Functional manager
Role of the project

manager
Part-time
Project management
administrative staff
Part-time
What are the organizational characteristics of

a projectized structure?
Concepts
Concepts
What are the overall characteristics of matrix

structures?
What are three distinct forms of matrix

structures identified by the PMI?
Concepts
What are the differences in the characteristics

of the three forms of matrix organizational
style?
Concepts
Chapter 2
Chapter 2
P j ti d Organization
Projectized
O
i ti
Weak matrix
Balanced matrix
Strong matrix
Project manager
authority
High to almost total
Resource availability
High to almost total
Budget controlled by
Project manager
Role of the project

manager
Full-time
Project management
Full-time
Chapter 2
Chapter 2
Characteristic
Weak
Matrix
Balanced
Matrix
Strong
Matrix
Project manager
authority
Limited
Low to
medium
Medium to
high
R
Resource
availability
il bilit
Li it d
Limited
Low
o to
medium
Medium
ed u to
high
Budget controlled
by
Functional
Manager
Mixed/
shared
Project
manager
Role of the project

manager
Part-time
Full- time
Project management
Part-time
Part-time
Overall Characteristics of
Matrix Structures
Overall
Focus
Operations and projects
Authority
Two bosses: functional manager &

project manager
Project manager: control of projects
Full-time
Manager
Focus
Full-time
Employee
Focus
Split between projects & operations
Why is the composite organizational structure

considered somewhat of a hybrid?
Concepts
What is a chief advantage of a composite

structure?
Concepts
What are the four phases of the product

life cycle?
Concepts
Concepts
Chapter 2
The flexibility for management to adapt the

approach to managing projects in the
organization according to the characteristics
of the project.
Chapter 2
In this type of structure, one project may be

organized in a functional manner; another
project could be organized using a matrix or
projectized type of structure.
structure In addition
addition, the
composite structure could have a separate
silo solely for project management working
alongside resources from other silos who are
also managing projects.
Chapter 2
Introduction
Growth
Maturity
Decline
Process Groups & Knowledge Areas
According to the PMI, what is a process?
What are inputs?
What are tools and techniques?
What are outputs?
Chapter 3
Documents or documentable items that will be

acted upon; items needed for the process to
proceed
Chapter 3
Documents or documentable items that are a

result of the process. These are usually a
deliverable and are tangible and measurable.
deliverable,
measurable
The outputs from one process often show up
as inputs to another process, creating a
smooth flow of work throughout the project.
Chapter 3
A set of interrelated actions and activities

performed to achieve a pre-specified product,
result, or service
Chapter 3
Actions applied to the inputs to create

outputs; examples of tools and techniques are
measuring, planning, applying a skill,
templates, software, etc.
What is the difference between tools and

inputs?
Concepts
Concepts
Which Process Group do these processes

belong to?
Develop Project Charter
Identify Stakeholders
What are the five overarching Process Groups

in the PMBOK Guide?
Concepts
What are the 20 processes in the Planning

Process Group?
Concepts
Chapter 3
Initiating
Planning
Executing
Monitoring and Controlling
Closing
Chapter 3
Tools are tangible items used in the

performance of an activity to produce a result.
Inputs are those items required by a process
in order for that process to proceed.
Chapter 3
Develop
p Project
j
Management Plan
Collect Requirements
Define Scope
Create WBS
Define Activities
Sequence Activities
Estimate Activity
Resources
Estimate Activity
Durations
Develop Schedule
Estimate Costs
Determine Budget
g
Plan Quality
Develop Human
Resource Plan
Plan Communications
Plan Risk Management
Identification Risks
Perform Qualitative
Risk Analysis
Perform Quantitative
Risk Analysis
Plan Risk Responses
Plan Procurements
Chapter 3
Initiating Process Group
What are the 8 processes in the Executing

Process Group?
Concepts
Concepts
What are the 2 processes in the Closing

Process Group?
What are the 10 processes in the Monitoring

and Controlling Process Group?
Concepts
How does the PMBOK Guide describe these

three major documents?
Project charter
Project scope statement
Project management plan
Concepts
Chapter 3
Monitor and Control Project Work

Perform Integrated Change Control
Verify Scope
Control Scope
Control Schedule
Control Costs
Perform Quality Control
Report Performance
M it And
Monitor
A d Control
C t l Risks
Ri k
Administer Procurements
Chapter 3
Direct and Manage Project Execution

Perform Quality Assurance
Acquire Project Team
Develop Project Team
Manage Project Team
Distribute Information
Manage Stakeholder Expectations
C d tP
Conduct
Procurements
t
Chapter 3
Project charter: Gives formal authorization

to the project.
Project scope statement: Describes the
work that needs to be accomplished and
the specific deliverables that the project is
to produce.
Project management plan: Describes how
the project work will be performed. It is a
collection
co
ect o of
o smaller
s a e co
component
po e t plans
p a s and
a d
documents.
Chapter 3
Close Project or Phase

Close Procurements
What are the nine project management

Knowledge Areas?
What are the 6 processes of Project

Integration Management?
Concepts
Concepts
Which Project
Integration
Management
j
g
g
process occurs in the Initiating
Process Group?
Concepts
Which Project
Integration
Management
j
g
g
process occurs in the Planning
Process Group?
Concepts
Chapter 3
Chapter 3

Develop Project Management Plan
Project Integration Management

Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project Human Resource Management
Project Communications Management
j
Risk Management
g
Project
Project Procurement Management
Chapter 3
Chapter 3
Which Project
j
Integration
g
Management
g
process occurs in the Executing
Process Group?
Concepts
Concepts
Which Project
Integration
Management
j
g
g
process occurs in the Closing Process
Group?
Which Project
j
Integration
g
Management
g
processes occurs in the Monitoring and
Controlling Process Group?
Concepts
How would you describe Project Scope

Management?
Concepts
Chapter 3

Chapter 3
Chapter 3
Doing
g the work that is required,
q
but not more
work than it takes to successfully complete
the project
Chapter 3
What are the 5 processes of Project Scope

Management?
Concepts
Concepts
Which Project
Scope
processes
j
p Management
g
p
occur in the Monitoring and Controlling
Process Group?
Which Project Scope Management processes

occur in the Planning Process Group?
Concepts
What are the 6 processes of Project Time

Management?
Concepts
Chapter 3
Chapter 3
Define Scope
Create WBS
Define Scope
Create WBS
Verify Scope
Control Scope
Chapter 3
Define Activities
Sequence Activities
Estimate Activity Resources
Estimate Activity Durations
Develop Schedule
Control Schedule
Chapter 3
Verify Scope
Control Scope
Which Project Time Management processes

Concepts
Concepts
What are the 3 processes of Project Cost

Management?
Which Project
j
Time Management
g
process
p
occurs in the Monitoring and Controlling
Process Group?
Concepts
Which Project Cost Management processes

Concepts
Chapter 3
Chapter 3
Control Schedule
Define Activities
Sequence Activities
Develop Schedule
Chapter 3
Estimate Costs
Determine Budget
Chapter 3
Estimate Costs
Determine Budget
Control Costs
Which Project
j
Cost Management
g
process
p
Process Group?
Concepts
Concepts
Which Project Quality Management process

occurs in the Planning Process Group?
What are the 3 processes in Project Quality

Management?
Concepts
Which Project Quality Management process

occurs in the Executing Process Group?
Concepts
Chapter 3
Plan Quality
Chapter 3
Control Costs
Chapter 3
Chapter 3
Plan Quality
Which Project
j
Quality
y Management
g
process
p
Process Group?
Concepts
Concepts
Which Project
Human Resource
j
Management process occurs in the
Planning Process Group?
What are the 4 processes in Project Human

Resource Management?
Which Project
Human Resource
j
Management processes occur in the
Executing Process Group?
Concepts
Concepts
Chapter 3
Develop Human Resource Plan

Manage Project Team
Chapter 3
Chapter 3

(D
(Developing
l i a project
j t team
t
occurs in
i every
phase. If given a choice on the test, the
better answer is that this process occurs
throughout the life of the project.)
Chapter 3
Which Project
j
Human Resource Management
g
process occurs in the Monitoring and
Concepts
Concepts
Which Project
Communications
j
Management processes occur in the
Planning Process Group?
What are the five processes in Project

Communications Management?
Which Project
Communications Management
j
g
process occurs in the Executing
Process Group?
Concepts
Concepts
Chapter 3
Identify Stakeholder Team

Plan Communications
Report Performance
Chapter 3
Manage Project Team
Chapter 3
Chapter 3
Plan Communications
Which Project
j
Communications Management
g
processes occur in the Monitoring and
Concepts
Concepts
Which Project Risk Management processes

occur in the Planning Process Group
What are the 6 processes of Project Risk

Management?
Concepts
Which Project
Risk Management
process
j
g
p
Process Group?
Concepts
Chapter 3

Identify Risks
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
Plan Risk Responses
Monitor And Control Risks
Chapter 3

Report Performance
Chapter 3
Monitor and Control Risks
Chapter 3

Identify Risks
Plan Risk Responses
What are the 4 processes of

Project Procurement Management?
Which Procurement Management process

occurs in the Planning Process Group?
Concepts
Concepts
Which Project
Procurement
j
Executing Process Group?
Which Project
Procurement Management
j
g
process occurs in the Monitoring and
Concepts
Concepts
Chapter 3
Chapter 3
Plan Procurements
Plan Procurements
Conduct Procurements
Close Procurements
Chapter 3
Chapter 3
Process Groups & Knowledge
Which Project
j
Procurement
Closing Process Group?
Concepts
Concepts
Concepts
Concepts
Close Procurements
What are the Project

j
Integration
g
Management
g
processes and in which Process Group does
each process fit?
Concepts
Concepts
What are the two types of project selection

methods?
What are the key components of the project

SOW?
Concepts
What does project integration mean?
Concepts
Chapter 4
Business needs for the project

Product scope description
Strategic plan (how the project relates to
the strategic plan)
Chapter 4
Process
Process Group
Initiating
Planning
Direct and Manage Project

Execution
Executing
Closing
Chapter 4
How the project fits into the organization or

enterprise
How all the pieces or components of the
project fit together
Chapter 4
Benefit measurement methods

Constrained optimization methods
What is the primary deliverable of the Develop

Project Charter process?
Concepts
Concepts
Which project document identifies why

the project should be funded and how the
project meets the business needs described
in the SOW?
What are three main reasons that

organizations undertake projects?
Concepts
What is the p
primary
y difference between
NPV (net present value) and EPV (expected
present value)?
Concepts
Chapter 4
To solve a business problem

To address a business need
To exploit a business opportunity
Chapter 4
The project charter
Chapter 4
EPV can take into account risk and adjusts

j
the
projected annual cash flow based upon the
potential risks.
Chapter 4
The business case
What are the benefit measurement methods

for project selection and what is the most
desirable scenario for each?
Concepts
Concepts
Which project management process involves

doing the work outlined in the project
management plan to achieve the project
goals?
When in doubt on p
project
j
issues, change
g
requests, or if you have questions, what
should you refer to?
Concepts
What is the purpose of a configuration

management system?
Concepts
Chapter 4
Chapter 4
Method
Concept
BCR
Greater than 1; higher is better, Go

with less than 1 only if project is
mandated
NPV
Positive; higher is better. Go with

negative
g
only
y if p
project
j
is mandated by
y
regulation or law.
Payback period
A shorter payback period is better.
Weighted scoring model
The highest score is best.
IRR
Higher is better.
The project management plan
Chapter 4
To define and document how changes

g to the
product are to be submitted, tracked,
reviewed, and approved or rejected
Chapter 4
When does Close Project or Phase occur?
Concepts
Collecting the project (or phase) records,

documenting the results, obtaining formal
acceptance and transferring the completed
acceptance,
(or canceled) project or phase to the
appropriate party describes which Project
Integration Management process?
Concepts
What is the responsibility of the change

control board?
Concepts
Concepts
Chapter 4
Chapter 4
When the work of the project or phase is

complete
When the work stops (before the work is
complete)
Chapter 4
To review,
review evaluation
evaluation, and approve (or reject)
change requests
What is the definition of a statement of work?
What is integrated change control?
What is initiator?
What is payback period?
Chapter 4
The process of reviewing change requests,

approving (or rejecting) them
them, and controlling
approved changes to the deliverables and
organizational process assets
Chapter 4
The time it takes to recoup the investment

made in the project
Chapter 4
A narrative description of the products or

services to be supplied by the project
Chapter 4
The person (or organization) with the ability to

authorize the project
What is the term for activities p

performed to
bring future performance into compliance with
the project management plan?
What is the PMIS (project management

information system)?
Who does the following description refer to?

The person, or group, providing the financial
resources for the project
What is the project charter?
Chapter 4
The collection of tools, techniques, and

processes used to gather,
gather integrate,
integrate and
disseminate the results of all of the project
management processes
Chapter 4
Corrective actions
Chapter 4
The document issued by the sponsor or

initiator to formally authorize the project,
commit the organization's
g
resources and
assets, and give the project manager authority
to manage the project. The initiator or sponsor
can write the charter or delegate the writing of
the charter to the project manager.
Chapter 4
The project sponsor
Which important project document is

described by the following statement:
A d
document,
t or collection
ll ti off documents,
d
t
created by the project manager based on
input from the project team, stakeholders,
management, and others, that is used to
manage
a age tthe
ep
project
oject
What are enterprise environmental factors?
What are organizational process assets?
Chapter 4
The p
policies, culture, and standards of the
organization; in other words, what the
organization is like
Chapter 4
The project management plan
Chapter 4
The organizations
g
processes
p
or knowledge
g
base that describes how the organization
manages projects
What are the five inputs to Develop Project

Charter?
What is the primary output of Close Project

or Phase?
ITTO
ITTO
Is expert judgment an input

input, tool and
technique, or output?
What are the five outputs of Direct and

Manage Project Execution?
ITTO
ITTO
Chapter 4
Final product, service, or result transition
Chapter 4
Project statement of work

Business case
Contract
Enterprise environmental factors
Organizational process assets
Chapter 4
Deliverables
Work performance information
Change requests
Project management plan updates
Project document updates
Chapter 4
Tool and technique
What are the three outputs of the Monitor and

Control Project Work process?
ITTO
ITTO
ITTO
ITTO
Chapter 4
Change requests
When is a project considered successful?
Concepts
Concepts
What are three responsibilities of the project

sponsor?
When is a project complete?
What is the lowest level that a project

manager manages the project to?
Concepts
Concepts
Chapter 5
Work package level
Chapter 5
When it meets stakeholders expectations
Chapter 5
Provide financial resources for project.

Formally accept the product of the project.
project
Protect the project from changing priorities
or political changes.
Chapter 5
When formal acceptance is received
The p
project
j
plan
p
is the basis on which project
p j
work will be done and measured.
True or false?
Concepts
Concepts
What does proper scope management mean?
What can a work authorization system help to

prevent?
Concepts
Which type
plan should address scope
yp of p
p
creep and performing work not included in the
project charter?
Concepts
Chapter 5
Scope creep
Chapter 5
True
Chapter 5
In a comprehensive scope management plan
Chapter 5
That you are staying within the scope leg of

the triple constraint triangle
What does scope creep not add to a project?
Concepts
Concepts
Typically, what is the product scope detailed,

Typically
detailed
managed, and measured against?
Concepts
Concepts
Chapter 5
The product requirements
Chapter 5
Value
How does the PMBOK Guide

Guide, Fourth Edition
define verification?
What do you call providing customers with

extras not originally included in the project
charter or project plan in an effort to exceed
their expectations?
How do you define project scope?
Chapter 5
Scope creep
Chapter 5
The evaluation of whether or not a product,

service or system complies with a regulation
service,
regulation,
requirement, specification, or imposed
condition
Chapter 5
The work required to deliver the product

product,
service, or result.
What are the 6 Project

j
Time Management
g
processes and which Process Groups do
they fit in?
Concepts
Concepts
What are two specific types of network

diagrams?
What do the Project Time Management

processes ensure?
What are three types of dependencies?
Concepts
Concepts
Chapter 6
The timely completion of a project
Chapter 6
Mandatory
Discretionary
External
Chapter 6
Process
Process Group
Define Activities
Planning
Sequence Activities
Planning
Planning
Planning
Develop Schedule
Planning
Control Schedule
Chapter 6
AON (activity-on-node), also called PDM

(precedence diagramming method)
AOA (activity-on-arrow), also called ADM
(arrow diagramming method)
What are the characteristics of the project

schedule?
Concepts
Concepts
What are some risks of crashing or

fast-tracking a project schedule?
What are two methods for schedule

compression?
What is the PMI definition of critical path?
Concepts
Concepts
Chapter 6
Crashing: Adding resources to critical path

activities
Fast tracking: Applying a lead to activities
that would typically start only after
precedent activities are finished
Chapter 6
It is calendar based.
It has resources assigned.
Is
I signed
i
d off
ff as partt off the
th project
j t
management plan.
It forms the basis for measuring schedule
performance.
Chapter 6
The longest
g
time path
p
through
g the network
diagram that determines the shortest duration
in which the project can be completed
Chapter 6
Increased costs
Unrealistic alternatives
Communication challenges
What is meant by the terms lead and lag?
Concepts
Concepts
What is decomposition?
What are three ways to graphically depict a

project schedule?
What is rolling wave planning?
Concepts
Concepts
Chapter 6
Chapter 6
Lag: A planned delay

L d Th
The time
ti
by
b which
hi h a successor task
t k
Lead:
may be accelerated to begin before the
predecessor task is complete
Network diagram
Bar chart or Gantt chart
Milestone chart
Chapter 6
A form of progressive elaboration in which

planning for near-term work is completed in
detail; whereas
whereas, planning for work to be
accomplished in the future is planned at a
higher level and then updated with additional
detail as the project progresses.
Chapter 6
A planning technique that subdivides scope

and deliverables into smaller components
p
to
achieve adequate detail for facilitating
effective execution, management, monitoring
and controlling of the work
What are four types of dependencies or

precedence relationships?
Concepts
Concepts
What is the purpose of a resource calendar?
What does a network diagram show

show, and what
does it not show?
Concepts
What are the typical activities of variance

analysis?
Concepts
Chapter 6
It shows the projects scheduled activities and

the logical relationships among those
activities. It might or might not show the
duration for each activity
activity.
It does not show the start and finish dates of
the project, nor the resources needed for the
activities.
act
t es
Chapter 6
Look at the baseline and the actual

differences.
Determine the cause of the differences.
Determine whether corrective action is
necessary.
Chapter 6
Finish-to-start
Finish-to-finish
Start-to-start
Start-to-finish
Chapter 6
To show when, and for how long,

g resources
(such as equipment, people, and materials)
are potentially available
Which activities have no slack or float?
Concepts
Concepts
Concepts
Concepts
Chapter 6
Typically, the activities on the critical path

have no float or slack; therefore, the project
p j
manager needs to watch these activities more
closely than others that have float or
scheduling flexibility.
Decomposition,
p
rolling
g wave planning,
p
g
templates, and expert judgment are tools and
techniques for which process?
What are the three inputs for the Define

Activities process?
ITTO
ITTO
Expert judgment, alternatives analysis,

published estimating
p
g data, bottom-up
p
estimating, and project management software
are tools and techniques for which Project
Time Management process?
Activity
project
y duration estimates and p
j
document updates are the outputs for which
Project Time Management process?
ITTO
ITTO
Chapter 6
Chapter 6
Scope baseline
Operational process assets
Define Activities
Chapter 6
Chapter 6
The project schedule, the schedule baseline,

schedule data,
data and project document updates
are outputs of which Project Time
Management process?
What are the three outputs of the Define

Activities process?
ITTO
ITTO
What are the five tools and techniques for the

Estimate Activity Durations process?
What are the eight tools and techniques for

the Control Schedule process?
ITTO
ITTO
Chapter 6
Chapter 6
Activity list
Activity attributes
Milestone list
Develop Schedule
Chapter 6
Performance reviews
Variance analysis
Project management software
Resource leveling
What-if scenario analysis
Adjusting leads and lags
Schedule compression
S h d li tool
Scheduling
t l
Chapter 6
Expert judgment
Analogous estimating
Parametric estimating
Three-point estimates
Reserve analysis
What is the formula for the three-point

three point
estimate, PERT?
How is free float calculated?
Formulas
Formulas
Formulas
Formulas
Chapter 6
LS ES
LF EF
Chapter 6
CE = (CO + 4CM + CP)

6
What is reserve analysis?
What is meant by the terms work

work effort
effort and
duration?
What are contingency reserves?
What is resource leveling and give an example

of a resource leveling heuristic?
Chapter 6
Work effort: The total number of labor units

required to complete an activity, typically
stated in person hours
hours, person days,
days
person weeks, etc.
Duration: The number of work periods that
it will take to complete an activity
Chapter 6
Resource leveling: Smoothing out the work

of project resources to avoid overallocating a resource
p
Heuristics examples:
Work can be leveled only between
resources of the same type or same
skill level.
Critical path activities have priority in
l
leveling
li
over noncritical
iti l path
th activities.
ti iti
Chapter 6
Looking at the contingency reserve to

determine how much has been used and how
much remains in order to estimate whether
there are enough reserves to last until the end
of the project
Chapter 6
Buffers built into time schedules ((or cost

estimates), by the project manager, to handle
known unknowns (risks)
What is the Estimate Costs process?
What is the Determine Budget process?
Concepts
Concepts
What are the 3 processes of Project Cost

Management?
Concepts
What are the seven parameters normally

established by the cost management plan?
Concepts
Chapter 7
Aggregating
gg g
g the estimated cost of individual
activities or work packages to establish an
authorized cost baseline
Chapter 7
An approximation of the monetary resources

needed to complete project activities
Chapter 7
Level of accuracy
Units of measure
Organizational procedure links
Control thresholds
Rules of performance measurement
Reporting formats
p
Process descriptions
Chapter 7
Estimate Costs
Determine Budget
Control Costs
What is analogous estimating?
What is parametric estimating?
Concepts
Concepts
three point estimate

What is the three-point
named PERT?
What is bottom-up estimating?
Concepts
Concepts
Chapter 7
A top-to bottom method of estimating, using a

statistical relationship between historical data
and other parameters to calculate an
estimated cost for activities
Chapter 7
An estimating process that uses three

estimates to define the range for an activitys
activity s
cost, then weights the most likely by a factor
of four.
Chapter 7
Gross top-down method of estimating. It uses

values of parameters (such as scope, cost,
budget,
g and duration)) or measures of scale
(such as size, weight, and complexity) from a
previous similar or successfully executed
project as the basis for estimating the same
parameters for a current project.
Chapter 7
A method of estimating project cost by

estimating
g each component
p
of the work. The
work is broken down to the smallest specific
detail. The detail cost is then rolled up to
higher levels.
What are the three PERT estimates?
What is AC (actual cost)?
Concepts
Concepts
What are the three earned value data points?
Concepts
What are the four EVM status measures?
Concepts
Chapter 7
The actual cost incurred and recorded in

accomplishing the work
work. AC has no upper
limit; it is whatever is spent to accomplish the
work.
Chapter 7
Most likely (CM)

Optimistic (CO)
Pessimistic (CP)
Chapter 7
SV (schedule variance)
CV (cost variance)
SPI (schedule performance index)
CPI (cost performance index)
Chapter 7
PV (planned value)
EV (earned value)
AC (actual cost)
What are four of the different ways to

determine EV?
What does the scope baseline consist of?
Concepts
Concepts
What are the four constraints that might affect

your cost estimates?
Concepts
What are the seven resources for which cost

estimates should be developed on a project?
Concepts
Chapter 7
Chapter 7
Scope statement
WBS
WBS dictionary
Fixed formula rule

Weighted milestones
Apportioned effort
Percent complete
Chapter 7
Labor
Materials
Equipment
Services
Facilities
Inflation allowance
g
y
Contingency
Chapter 7
Limited budget
Required delivery dates
Availability of skilled resources
Organizational policies
Later in the Planning phase, what is the cost

estimate called?
What is its range?
In the Initiation phase

phase, what is the cost
estimate called? What is its range?
Concepts
Concepts
What is the usual method of showing the cost

baseline and expenditures?
Concepts
What are the two main categories of cost in

cost of quality?
Concepts
Chapter 7
Definitive estimate
Range = +/ 10%
Chapter 7
ROM (rough order of magnitude)

Range = +/ 50%
Chapter 7
Conformance and nonconformance
Chapter 7
An S-curve
What are the six inputs to the Estimate Costs

process?
What are the three outputs of the Estimate

Costs process?
ITTO
ITTO
What are the seven inputs to the Determine

Budget process?
What are the five tools and techniques for the

Determine Budget process?
ITTO
ITTO
Chapter 7
Chapter 7
Activity cost estimates

Basis of estimates
Scope baseline
Project schedule
Human resource plan
Risk register
Chapter 7
Cost aggregation
Reserve analysis
Expert judgment
Historical relationships
Funding limit reconciliation
Chapter 7

Basis of estimates
Scope baseline
Project schedule
Resource calendars
Contracts
g
process
p
assets
Organizational
What are the three outputs of the Determine

Budget process?
What are the four inputs to the Control Costs

process?
ITTO
ITTO
What are the six outputs of the Control Costs

process?
What are the six tools and techniques for the

Control Costs process?
ITTO
ITTO
Chapter 7

Project funding requirements
Chapter 7
Cost performance baseline

Project funding requirements
Chapter 7
Earned value management

Forecasting
To-complete performance index (TCPI)
Performance reviews
Variance analysis
Project management software
Chapter 7
Work performance measurements

Budget forecasts
Operational process assets updates
Change requests
What are the nine tools and techniques for

Estimate Costs?
What is the function of the reserve analysis

tool in Estimate Costs?
ITTO
ITTO
ITTO
ITTO
Chapter 7
To establish the contingency reserve,

which is an allowance for unplanned, not
initially identified
identified, but potentially required
changes (known unknowns)
To make sure that adequate reserves
remain as the project progresses
Chapter 7
Expert judgment
Analogous estimating
Parametric estimating
Bottom-up estimating
Three-point estimates
Reserve analysis
Cost of quality
j
management
g
estimating
g software
Project
Vendor bid analysis
What is PV (planned value)?
What is the total planned value for a project

also known as?
What is EV (earned value)?
What does the term EAC mean?
Chapter 7
The authorized budget

g assigned
g
to the work to
be accomplished for an activity or WBS
component
The BAC (budget at completion)
Chapter 7
Estimate at completion
Chapter 7
Chapter 7
The value of the work p

performed. It is the
authorized value of the work that has been
completed
What does the term ETC mean?
What does forecasting mean?
Chapter 7
Developing an estimate of the cost of the

project at completion
project,
completion, based upon project
performance. This is called EAC (estimate at
completion).
Chapter 7
Estimate to complete from this point to

the end
What are the formulas for SPI ((schedule

performance index) and CPI (cost
performance index)?
What are the formulas for SV (schedule

variance) and CV (cost variance)?
Formulas
Formulas
On the p
perfect project
(executed
on schedule
p j
(
and on budget), what will be true relative to
EVM at completion?
Formulas
What is the most accurate EAC formula that

works in every project case and must be used
when the original estimates are fundamentally
flawed?
Formulas
Chapter 7
Chapter 7
SPI = EV PV
SV = EV PV
CPI = EV AC
CV = EV AC
Chapter 7
EAC = AC + a new bottom-up ETC
Chapter 7
PV = EV = AC = BAC
What is the general form of the EAC formula?
Formulas
Formulas
What is the EAC forecast for a project that has

time anomaly
experienced a one
one-time
anomaly, but the
remaining work is expected to go as originally
planned?
What is the EAC forecast for a p

project
j
that is
expected to accomplish the ETC work at the
current CPI rate?
Formulas
What is the EAC forecast for ETC work

considering both SPI and CPI factors?
Formulas
Chapter 7
EAC =
BAC______
BAC
Cumulative CPI
Chapter 7
EAC = AC + ETC
Chapter 7
EAC = AC + _________BAC EV___________

Cumulative CPI x Cumulative SPI
Chapter 7
EAC = AC + (BAC EV)

CPI
What is the TCPI ((to-complete

p
performance
p
index) formula when the BAC is still
achievable?
Formulas
Formulas
What is the PERT formula for the mean cost?
What is the TCPI (to-complete performance

index) formula when the original BAC is no
longer achievable and the project is
rebaselined to the new EAC?
Formulas
What is the standard deviation () formula for

the PERT equation?
Formulas
Chapter 7
TCPI = _BAC
BAC EV_
EV
EAC AC
Chapter 7
TCPI = _BAC
BAC EV_
EV
BAC AC
Chapter 7
= (CP CO)
6
Chapter 7
Mean cost = CO + 4 CM + CP
6
What are the 3 processes of Project Quality

Management?
Concepts
Concepts
What is the Rule of 7 or the 7 Run Rule?
Which three type of cost are considered to be

part of the cost of quality?
Concepts
What is the Trend of 7 Rule?
Concepts
Chapter 8
Prevention costs
Appraisal costs
Failure costs
Chapter 8
Plan Quality
Chapter 8
Ap
process is out of control whenever 7 data
points follow a trend up or down across the
mean.
Chapter 8
A process is out of control whenever 7 data

points in a row are above or below the mean.
What is the 2 out of 3 Rule?
What is the Rule of 1?
Concepts
Concepts
What are the objectives of a quality audit?
Concepts
What are Ishikawas seven basic quality

control tools?
Concepts
Chapter 8
Ap
process is out of control whenever a single
g
data point falls outside the specification limits
(upper or lower).
Chapter 8
Cause and effect diagrams

Control charts
Flowcharts
Histograms
Pareto charts
Run charts
g
Scatter diagrams
Chapter 8
Ap
process is out of control whenever 2 out of
3 data points fall between the 2 and 3 standard
deviation limits.
Chapter 8
Identify good or best practices.

Identify gaps and shortcomings.
Share good practices within the
organization or industry
industry.
Proactively improve processes to raise
team productivity.
Highlight contributions identified through
the audit in the lessons learned repository
repository.
What is the difference between validation and

verification?
Concepts
Concepts
According to Deming
Deming, who has responsibility
for the cost of quality?
What is the Deming Cycle?
Concepts
What is Philip Crosbys quality theory and

what is his main point?
Concepts
Chapter 8
The PDCA ((Plan-Do-Check-Act)) cycle;

y
it
focuses on the iterative nature of continuous
improvement
Chapter 8
The Zero Defects theory

M i point:
Main
i t It iis better
b tt to
t preventt defects
d f t from
f
occurring at all, thereby saving the cost of
nonconformance.
Chapter 8
Validation is the assurance that a product,

service, or system meets the needs of the
customer and other identified stakeholders.
Verification is the evaluation of whether or
not a product, service, or system complies
with a regulation, requirement,
specification, or imposed condition.
Chapter 8
Deming
g suggests
gg
that 85 percent
p
of the cost
of quality is managements responsibility and
under managements control.
What is the focus of Jurans quality theories?
Concepts
What are the five levels of maturity in CMMI?
Concepts
What is the purpose of the process

improvement plan?
Concepts
Concepts
Chapter 8
Initial
Managed
Defined
Quantitatively managed
Optimizing
Chapter 8
Juran added the human dimension to quality

by creating a focus on customer satisfaction
satisfaction,
ensuring that requirements are met and the
product is fit for use.
Chapter 8
Indicates how p
processes will be identified and
analyzed toward enhancing the value of the
process.
What is attribute sampling?
What is variable sampling?
What is precision?
What is tolerance?
Chapter 8
The determination of the degree

g
of conformity
y
(along a continuous scale) to a general
characteristic
Chapter 8
A range of acceptable results or performance
Chapter 8
The determination of whether or not a sample

p
conforms to a specific measurement or
characteristic
Chapter 8
Repeatability of a measure within a tight

grouping (predictability)
What is accuracy?
Chapter 8
The closeness of a measured value to the
true value
What are the 4 processes of Project Human

Resource Management?
Concepts
Concepts
What are some of the organizational

process
g
p
assets that can influence the Develop Human
Resource Plan process?
What are the enterprise

p
environmental factors
that can influence the Develop Human
Resource Plan process?
Concepts
Which type of chart is frequently used to

outline project roles and responsibilities?
Concepts
Chapter 9
Organization, culture, and structure

Existing human resources
Personnel administration policies
Marketplace conditions
Chapter 9
Chapter 9
RAM (responsibility assignment matrix).

Manage Project Team
Chapter 9
Organizational standard processes and

policies and standardized role descriptions
p
for organizational
g
charts and
Templates
position descriptions
Historical information about the
organizational structures that have worked
in previous projects
What information does the RAM show?
Concepts
Concepts
What are some additional formats of a RAM

that you can use to document team member
roles and responsibilities?
When determining project roles and

responsibilities, what do you need to define?
Concepts
Where does informal and formal networking

take place?
Concepts
Chapter 9
Role
Authority
Responsibility
Competency or qualification
Chapter 9
Who is responsible to do the work (but not

when the work should be completed)
Chapter 9
Within an organization
organization, industry
industry, or professional
environment
Chapter 9
Hierarchical-type charts
Matrix-based charts
Text-oriented formats
Other sections of the project management
plan
What type
yp of theory
y is used to describe the
manner in which individual resources, teams,
and entire organizational units behave?
What types of activities are involved in

networking?
Concepts
Concepts
What kind of information does the human

resource plan provide to the project manager?
Concepts
What are some components of the human

resource plan?
Concepts
Chapter 9
Meetings, correspondence
Meetings
correspondence, and informal
conversations
Organizational theory
Chapter 9
Roles and responsibilities

Project organization charts
Staffing management plan
Chapter 9
Chapter 9
Guidance on how human resources should

be defined and brought
g on to the project,
p j
along with how the resources should be
managed, controlled, and eventually released
from the project
The PMBOK Guide notes that special

consideration should be given to the process
of releasing resources once their project work
is complete. Why?
Concepts
Concepts
According to the PMBOK Guide, the staffing

management plan helps project managers
deal with planning related to which type of
resource-related issues?
What else does the staffing

g management
g
plan
p
shows besides when and how team members
will be released?
Concepts
The Acquire Project Team process involves

getting the human resources assigned to the
project. What is the project managers
responsibility in this process?
Concepts
Chapter 9
Training needs,
needs recognition and rewards
rewards, and
regulation or contract compliance
Chapter 9
To lower costs by better defining when and

how team members will be released,
released as well
as to help with team member uncertainty
about their future after the project
Chapter 9
Identify the appropriate personnel

Document the skills or knowledge needed
g
with functional managers
g
and
Negotiate
other project managers for the desired
resources
Assign the project staff
Create a team directory
Chapter 9
Staff acquisition
Timetable
Staff release plan
Training needs
Recognition and rewards
Compliance
y
Safety
What are the HR responsibilities of the project

manager?
Concepts
Concepts
What is the belief on which the p

project
j
managers penalty or punishment authority
is based?
What is the belief on which the project

managers reward authority is based?
On which factors is the legitimate or formal

authority of the project manager based?
Concepts
Concepts
Chapter 9
Create role and responsibility assignments

assignments.
Develop a staffing management plan.
Publish an organization chart.
Create job descriptions.
y and fulfill training
g needs.
Identify
Negotiate for team resources.
Create a team directory.
Identify and provide team-building activities.
Provide input to project staff performance
appraisals.
appraisals
Manage meetings.
Position, or formal authority

Position
authority, in the
organization
Chapter 9
That the project manager can inflict

unpleasant consequences
Chapter 9
Chapter 9
That the project manager can issue rewards
Which factor enables the project manager

managers
s
expert authority to influence stakeholders?
Concepts
Concepts
In which Process Group is team building

typically shown?
Which factors contribute to the project

managers referent authority?
Concepts
What are the stages of team development?
Concepts
Chapter 9
The project managers personality

The project manager refers to the support
and authority of someone higher in the
organization
The team members have a lot of respect for
the project manager, and willingly go along
with decisions made by the project
manager.
a age
Chapter 9
The p
project
j
managers
g
knowledge
g or
expertise in both project management
and technical areas
Chapter 9
Forming
Storming
Norming
Performing
Deforming
Chapter 9
Executing
What is the purpose of a war room?
What is Maslows Hierarchy of Needs Theory?
Concepts
Concepts
According
g to Maslows Hierarchy
y of Needs,
what is true about a persons level in the
hierarchy?
Concepts
According
Theory,
g to Herzbergs
g Hygiene
yg
y
what are the two factors that contribute to
motivation?
Concepts
Chapter 9
Maslow defined five basic human needs
needs,
which he arranged in a pyramid. He stated that
lower level needs must be fulfilled before a
person can move up to the next level. Once
needs are satisfied at a p
particular level, those
needs no longer motivate the individual, and
the person progresses to the next step.
According to Maslow, the five levels of need
are basic physical needs, safety and security
needs social needs,
needs,
needs self-esteem
self esteem needs,
needs selfself
actualization needs.
Chapter 9
Hygiene factors and motivating factors
Chapter 9
Serves as a common meeting room where

team members can exchange information
Chapter 9
It is constantly changing
changing, moving up and
down, depending on external circumstances.
What does Herzberg

Herzbergs
s Hygiene Theory say
about the hygiene factors?
Concepts
Concepts
According to the Achievement Theory

Theory, which
three needs motivate people?
What is the Expectancy Theory of motivation?
Concepts
What is McGregors Theory X?
Concepts
Chapter 9
People are motivated if they expect to see a

positive outcome. They will be motivated and
remain productive as long as the reward
meets their expectations
expectations, they believe the
reward is strongly tied to their behavior, and
they are capable of doing the work requested.
This theory states that people will live up (or
down) to what you expect of them.
Chapter 9
It states that if the hygiene factors are met,

people
p
p are neutral, but not motivated. Poor
hygiene factors are demotivating, but
improving hygiene factors typically will not
increase motivation.
Chapter 9
Theory X assumes people are generally lazy

and will avoid work unless threatened. They
require constant supervision,
supervision have no
ambition, and require direct control to work
effectively. Theory X managers believe people
are motivated by punishment or money.
Chapter 9
Achievement, power, and affiliation
What is McGregors Theory Y?
What is Ouchis Theory Z?
Concepts
Concepts
What is meant by a situational continuum in

leadership theory?
Concepts
What are the four elements of the Situational

Continuum model?
Concepts
Chapter 9
Ouchis Theory Z is based on the Japanese

style of participative management, which
gives workers a large amount of freedom and
trust, and assumes that workers are motivated
by opportunity, advancement, and a sense of
commitment.
Chapter 9
Tell or direct: The project manager tells the

team or a subordinate what to do.
Sell or coach: The project manager guides
or leads through creative questioning
questioning.
Participate: The project manager works
with the team or subordinate to lead them.
Delegate: The project manager delegates
work or issues to the team or subordinate.
Chapter 9
Theory Y assumes that people want to

achieve, are creative, will work on their own,
and will do a good job given the right
motivation. Theory Y managers believe in
participative management, providing support,
and showing concern for their teams.
Chapter 9
That p
project
j
managers
g
adapt
p their leadership
p
style based on the job maturity of the team
members
What is involved in the Manage Project Team

process?
Concepts
Concepts
In a matrix organizational
structure, whose
g
responsibility is it to manage the dual
reporting relationship effectively?
Why is the Manage Project Team process

more complex in a matrix organization?
Concepts
What is the new view of conflict?
Concepts
Chapter 9
Because the team members

members loyalties and
accountabilities are split
Chapter 9
Tracking team members performance

Dealing with conflict
Handling changes and issues by both the
project manager and the team
Chapter 9
Conflict is necessary, can be beneficial,

allows the team to g
grow and come up
p with
more creative project solutions, and is best
resolved by the team members and their
immediate manager.
Chapter 9
The project managers
According to the PMI,

PMI what are some sources
of conflict?
Concepts
Concepts
What is the view of the PMI regarding

g
g the
confronting/problem solving method of
resolving conflict?
What does confronting mean in the context of

conflict management?
Concepts
Which conflict resolution techniques are

noted in the PMBOK Guide?
Concepts
Chapter 9
Scarce resources
resources, scheduling priorities,
priorities
personal work styles
Solving the problem
Chapter 9
Withdrawing/avoiding
Smoothing/accommodating
Compromising
Forcing
Collaborating
Confronting/problem solving
Chapter 9
Chapter 9
It is a win-win
win win strategy and is the preferred
conflict resolution method.
What does proper Human Resource

Management mean?
What is a project organization chart?
What is referent authority?
What is representative authority?
Chapter 9
A graphical depiction of team members and

their hierarchal reporting relationships
Chapter 9
Making effective use of everyone involved

with the project,
project including the project team,
team
sponsors, customers, contractors, and other
stakeholders
Chapter 9
Authority that is granted to an individual

by a group
Chapter 9
Authority that is inferred to the project

manager by the team members
What is team building?
What is co-location?
What is a war room?
Chapter 9
Physically
y
y locating
g all or most team members
in the same location to allow them to work
more effectively together
Chapter 9
Getting a temporary group of people together

and getting them to work together
Chapter 9
A room set aside for the projects use when

team members are located in separate
facilities; a common approach to co-location
of the project team
Which tools are involved in the Develop

Project Team process?
ITTO
ITTO
ITTO
ITTO
Chapter 9
Interpersonal skills
Training
Team-building activities
Ground rules
Co-location
Recognition and rewards
g
skills
General management
What do the Project Communications

Management processes ensure?
What are the five Project Communications

Management processes?
Concepts
Concepts
What are the multiple dimensions of

communication activity?
Name nine communication skills (most are

also common for general management skills).
Concepts
Concepts
Chapter 10
Plan Communications
Report Performance
Chapter 10
Timely
y and appropriate
pp p
generation,
g
collection,
distribution, storage, retrieval, and disposition
of project information
Chapter 10
Listening actively and effectively

Questioning to ensure better understanding
Educating to be more effective
Fact-finding
Setting and managing expectations
Persuading to act
Negotiating agreements
Resolving conflict
S
Summarizing,
i i
recapping,
i
and
d identifying
id
if i the
h
next steps
Chapter 10
Internal and external

Formal and informal
Vertical and horizontal
Official and unofficial
Written and oral
Verbal and nonverbal
What are the three steps in stakeholder

analysis?
Concepts
Concepts
What are three elements of a stakeholder

management strategy?
What are four ways to classify stakeholders?
Concepts
Approximately
pp
y how much of the project
p j
managers time should be spent
communicating?
Concepts
Chapter 10
Power/Interest grid
Power/Influence grid
Influence/Impact grid
Salience model (power, urgency, and
legitimacy)
Chapter 10
90 percent
Chapter 10
Step 1: Identify all potential stakeholders

and their roles, interest, knowledge,
expectations, and influence levels.
p 2: Identify
y the p
potential impact
p
or
Step
support that each stakeholder could
generate; classify the stakeholders, and
define a stakeholder management strategy.
Step 3: Assess how key stakeholders are
lik l to
likely
t reactt in
i various
i
situations.
it ti
Chapter 10
List of key stakeholders

Level of participation desired for each
stakeholder
Stakeholder groups and their
management (as groups)
What does effective communication mean?
Concepts
Concepts
What are the five key components of the

communication model?
What are the five factors that can affect

project communication technology?
Concepts
In communication between a sender and

receiver who is responsible for making sure
receiver,
that the information is received, understood,
and acknowledged?
Concepts
Chapter 10
Urgency of the need for information

Availability of technology
Expected project staffing
Duration of the project
Project environment
Chapter 10
That the information is p

provided in the right
g
format, at the right time, and with the right
impact
Chapter 10
The receiver
Chapter 10
Encode
Message and feedback
Medium
Noise
Decode
As part of the communication process,

process what is
the sender responsible for?
Concepts
Concepts
To distribute information effectively,

y which
aspects of information do you need to
focus on?
What are three communication methods?
Concepts
What are some information distribution tools?
Concepts
Chapter 10
Chapter 10
Making the information clear

Making the information complete
Confirming that the information is properly
understood
Interactive
Push
Pull
Chapter 10
Hard copy distribution

Electronic communication and
conferencing (e-mail,
(e mail fax,
fax voice mail,
mail
telephone, etc.)
Electronic tools (Web interfaces, portals,
virtual office support, etc.)
Chapter 10
Sender-receiver models
Choice of media
Writing style
Meeting management techniques
Presentation techniques
Facilitation techniques
What is the sender

senders
s responsibility in
communication?
What is involved in the Manage Stakeholder

Expectations process?
Concepts
Concepts
What does efficient communication mean?
Concepts
What is involved in the Identify

Stakeholders process?
Concepts
Chapter 10
Communicating
g and working
g with
stakeholders to meet their needs and to
address issues they bring up as they occur
Chapter 10
Identifying all the individuals (and

organizations)
g
) that will be impacted
p
by
y the
project and documenting information about
their interests, involvement, and impact on
project success.
Chapter 10
To make the message clear and complete

complete, and
to confirm that it is properly understood
Chapter 10
Providing only the information that is needed
Why would a project manager need to manage

stakeholder expectations?
Concepts
Concepts
What are the management

skills that the
g
project manager might apply when managing
How is a change log used?
What is an issue log?
Concepts
Concepts
Chapter 10
A log that can be used to document and

monitor the resolution of project stakeholder
issues. It is a great communication tool to use
with stakeholders.
Chapter 10
Presentation
Negotiating
Writing
Public speaking
Chapter 10
Increases likelihood of project acceptance

Keeps issues from becoming concerns
Helps stakeholders understand project
benefits
Helps stakeholders understand
project risks
Limits disruptions during the project
Helps influence stakeholder expectations
Encourages stakeholder participation
Chapter 10
To document changes
g that occur during
ga
project. It is a good communication tool to use
with stakeholders.
What are the interpersonal

p
skills that the
project manager might apply when managing
Concepts
Concepts
What type of information might be included in

detailed performance reports?
What type of information might be included in

simple performance reports
Concepts
What is included in work performance

measurements?
Concepts
Chapter 10
Percent complete
Status of scope, schedule, cost, and quality
Chapter 10
Building trust
Resolving conflict
Actively listening
Overcoming resistance to change
Mentoring
Being sensitive to others
You
ou can
ca find
d more
o e on
o interpersonal
te pe so a s
skills
s in
Appendix G of the PMBOK Guide.
Chapter 10
Planned versus actual schedule

performance
Planned versus actual cost performance
Planned versus actual technical
performance
Chapter 10
Analysis of past performance

Current status of risks and issues
Work completed during the reporting
period
Work to be completed in the next reporting
period
Summary of changes approved in the
period
Forecasted project completion
Forecasting is the process of predicting future

project performance based on current
performance. What are the four major
categories of forecasting?
Concepts
Concepts
What are examples of time series methods of

forecasting?
What is the risk of not expending project

resources in communicating information?
Concepts
What are some elements of a communications

management plan?
Concepts
Chapter 10
Chapter 10
Project failure
Time series method

Causal/econometric methods
Judgmental methods
Other methods (simulation, probabilistic
forecasting, and ensemble forecasting)
Chapter 10
Stakeholder communications
requirements
Information to be
communicated
Reason for the distribution of
that information
Timing and frequency
Person responsible for
communicating the
information
Person responsible for
authorizing the
communication of the
i f
information
ti
Persons/groups who will
receive the communication
Methods or
technologies used to
convey the information
Resources allocated
Escalation process
Method for revisions
Glossary of common
terminology
Flow charts of
information flow
Communications
constraints
Guidelines
Gu
de es for
o meetings
eet gs
Templates for project
status meetings
Chapter 10
Earned value
Moving average
Extrapolation
Linear prediction
Trend estimation
Growth curves
What are the four inputs to the Identify

What are the two tools and techniques used in

the Identify Stakeholders process?
ITTO
ITTO
What are the two outputs from the Identify

What are the four inputs to the Plan

Communications process?
ITTO
ITTO
Chapter 10
Chapter 10
Stakeholder analysis
Expert judgment
Project charter
Procurement documents
Chapter 10
Stakeholder register
Stakeholder management strategy
Chapter 10
What are the four tools and techniques used

in the Plan Communications process?
What are the two outputs from the Plan

Communications process?
ITTO
ITTO
What are the three inputs to the Distribute

Information process?
What are the two tools and techniques used in

the Distribute Information process?
ITTO
ITTO
Chapter 10
Chapter 10
Communications management plan

Communication requirements analysis

Communication technology
Communication models
Communication methods
Chapter 10
Information distribution tools
Chapter 10

Performance reports
What is the one output from the Distribute

Information process?
What are the six inputs to the Manage

Stakeholder Expectations process?
ITTO
ITTO
What are the three tools and techniques

used
q
in the Manage Stakeholder Expectations
process?
What are the four outputs from the Manage

Stakeholder Expectations process?
ITTO
ITTO
Chapter 10
Issue log
Change log
Chapter 10
Organizational process assets updates
Chapter 10

Change requests
Chapter 10
Interpersonal skills
Management skills
What are the five inputs to the Report

Performance process?
What are the four tools and techniques used

in the Report Performance process?
ITTO
ITTO
What are the three outputs from the Report

Performance process?
ITTO
ITTO
Chapter 10
Variance analysis
Forecasting methods
Reporting systems
Chapter 10

Work performance measurements
Budget forecasts
Chapter 10
Performance reports
Change requests
What is the formula for the potential lines of

communication channels?
Formulas
Formulas
Formulas
Formulas
Chapter 10
Potential lines = N (N 1) where

here N = stakeholders
2
involved
Project Risk Management
What are the 6 Project Risk Management

processes?
Concepts
Concepts
What are the strategies for negative risks

(threats)?
What are the two kinds of risk?
What is the primary goal of risk management?
Concepts
Concepts
Chapter 11
Increase the probability and impact of positive

risks (opportunities) and decrease the
probability and impact of negative risks
(threats)
Chapter 11
Avoid
Transfer or deflect
Mitigate
Accept
Chapter 11

Identify Risks
Plan Risk Responses
Chapter 11
Negative risks (threats): Can result in

increased cost, lost time, or other detrimental
results to the project
Positive risks (opportunities): Can save time
or money or produce other project benefits
What are the strategies for positive risks

(opportunities)?
Concepts
Concepts
What is the primary difference between Plan

Risk Management and Plan Risk Responses?
What is a workaround and when might it

be used?
Concepts
What is the p
purpose
of the planning
p
p
g meetings
g
and analysis in the Plan Risk Management
process?
Concepts
Chapter 11
An unplanned
p
response
p
to risk, created as
needed to deal with an unanticipated risk or
when no contingency plan exists
Chapter 11
Conducting high-level plans for risk

management activities, which might:
Determine the definitions of risk,
probability, and impact for projects
Assign risk responsibilities
Establish risk reserve approaches
Tailor templates for risk documents
Develop cost elements and schedule
activities for the project budget and
schedule
Chapter 11
Exploit
Share
Enhance
Accept
Chapter 11
Plan Risk Management: The objective is to

decide upon the overall approach for
managing risk for the project as a whole.
Plan Risk Responses: The objective is to
develop a risk response plan for each
individual risk that was identified as a high
priority risk, based upon qualitative and
quantitative
tit ti risk
i k analysis.
l i
What are the main responsibilities of

risk owners?
What is the difference between contingency

reserves and management reserves?
Concepts
Concepts
What is the difference between secondary

risks and residual risks?
Concepts
Why is the stakeholder register an input to

Identify Risks?
Concepts
Chapter 11
Contingency reserves: Buffers of time or
money that the project manager adds to the
schedule or budget for identified risks (known
unknowns)
Management reserves: Buffers of time or
money that management allows, and controls,
for unidentified risks (unknown unknowns).
Management reserve is usually the difference
b t
between
the
th approved
d project
j t budget
b d t and
d the
th
funding limitation.
Chapter 11
Key
y stakeholders, especially
p
y customers,
identified in the stakeholder register should
participate in identifying risks
Chapter 11
Track their assigned risks.

Implement
p
the documented risk response
p
plan if/when the risk occurs.
Monitor the risk for changes in probability
or impact.
Chapter 11
Secondary risks: Risks that result from

implementing a risk response
Residual risks: Minor risks that remain after a
planned response has been implemented
Why are documentation reviews tools and

techniques for Identify Risks?
Concepts
Concepts
Concepts
Concepts
Chapter 11
Project documentation, including plans,

assumptions previous project files
assumptions,
files, and plans
from past projects can be good indicators of
project risks.
How does the PMI define risk?
What is probability?
What is impact?
What is a trigger?
Chapter 11
The likelihood that the event or condition

may occur
Chapter 11
A symptom or warning sign that a risk is about

to occur or has already occurred
Chapter 11
An uncertain (future) event or condition that, if

it occurs
occurs, has a positive or negative effect on
a projects objective (such as scope, time,
quality, or cost)
Chapter 11
The consequences to the project,

project if the
event occurs
Which process uses information-gathering

techniques as tools and techniques?
What are the primary inputs to Plan Risk

Management?
What are some examples of information

gathering techniques?
ITTO
ITTO
What is the primary output of Identify Risks?
Updates
to the risk register
are key
of
p
g
y outputs
p
which four Project Risk Management
processes?
ITTO
ITTO
Chapter 11
Chapter 11
Identify Risks process

Examples of information-gathering
techniques:
Brainstorming
Delphi techniques
Interviewing (or expert interviewing)
Root cause analysis
Project scope statement

Other management plans (cost, schedule,
and communication)
Chapter 11

Plan Risk Responses
Chapter 11
The risk register
Risk assessment includes which three risk

management processes?
What are the eleven inputs to Identify Risks?
ITTO
ITTO
Risk probability and impact assessment,

probability and impact matrix, risk data quality
assessment risk categorization
assessment,
categorization, risk urgency
assessment, and expert judgment are tools
and techniques for which Project Risk
Management process?
Risk related contract decisions are outputs of

Risk-related
which Project Risk Management process?
ITTO
ITTO
Chapter 11
Risk management plan

Activity duration estimates
Scope baseline
Cost management plan
Schedule management plan
Quality management plan
j
documents
Project
Chapter 11
Identify Risks
Chapter 11
Plan Risk Responses
Chapter 11
What is the formula for calculating the risk

score and how is this score used?
Formulas
Formulas
What is the formula for calculating the EMV

and how is this value used?
Formulas
Formulas
Chapter 11
Chapter 11
P X I = Risk Score
P X Value of I = EMV
When performing
Wh
f
i quantitative
tit ti risk
i k analysis,
l i
calculate the EMV for each high-priority risk in
order to estimate the potential loss (or gain) of
time or money if the event occurs.
When performing qualitative risk analysis,

calculate
l l t a risk
i k score ffor each
h risk
i k id
identified
tifi d
on the risk register in order to determine
which risks have the highest score and should
be further considered by quantitative risk
analysis
a
a ys s a
and/or
d/o risk
s response
espo se p
planning.
a
g
What are some other terms for contract?
What are some other terms for buyer?
What are some other terms for seller?
What is PTA (point of total assumption)?
Chapter 12
Client
Customer
Prime contractor
Contractor
Acquiring organization
Government agency
Service requestor
P
Purchaser
h
Chapter 12
Agreement
Understanding
Subcontract
Purchase order
Chapter 12
PTA is the not-to-exceed cost, set by the

buyer, in a cost-plus contract. When the actual
costs differ from the estimated costs, the
buyer and seller split the difference along an
agreed-upon split. Any costs above the PTA
must be paid solely by the seller. The formula
for PTA is:
PTA = Ceiling price Total price + Total cost
Buyer share
Chapter 12
Contractor
Subcontractor
Vendor
Supplier
Service provider
What is procurement?
What is a proposal?
What is a teaming agreement?
Chapter 12
Also called a bid, tender, or quote, a proposal

is a document p
prepared
p
by
y the seller to
explain the costs, services, terms, etc., by
which the seller will meet the terms of the
contract with the buyer.
Chapter 12
Purchasing goods,
goods services,
services or results
typically from outside the organization
Chapter 12
A legal,
g contractual agreement
g
between two or
more entities to form a partnership or joint
venture
What are the 4 Project Procurement

Management processes?
What are the five elements of a contract?

Explain them.
Concepts
Concepts
What are two noncompetitive forms of

procurement?
What are some characteristics of a contract?
Concepts
Concepts
Chapter 12
C=C
Capacity:
it The
Th authority
th it to
t sign
i
contracts for your organization
C = Consideration: Money paid for the work
performed under the contract
O = Offer: What the buyer is willing to pay
the seller for the work of the contract
L = Legal: Purpose for which the work will
be completed
A = Acceptance: What the seller agrees to
take in payment for the work performed
Chapter 12
It is a formal, mutually binding agreement
between parties.
parties
Terms are enforceable by the legal system.
Changes must be formally controlled and in
writing.
All requirements
i
t should
h ld be
b stated
t t d in
i the
th
contract.
All contractual requirements must be met.
All requirements including reporting
requirements payments terms
requirements,
terms, ownership
and copyright terms, etc., must be
documented in the contract.
Chapter 12
Plan Procurements
Close Procurements
Chapter 12
Sole source: There is only one provider of

the needed service or product
Single source: There are multiple sources
from which the buyer selects one, based
upon various reasons or criteria
What are the three main types of contracts?
Concepts
Concepts
What are the characteristics of a cost plus

contract?
What are the characteristics of a fixed

fixed-price
price
contract?
Concepts
What are the characteristics of a time and

material contract?
Concepts
Chapter 12
Risk (of cost) is highest for the seller.

It is the most common type of contract.
The seller sets a fixed price, including
costs to compensate for risks.
risks
If the scope is not well-defined, the buyer
risks not getting what was needed; the
seller risks time and cost.
Incentives or penalties can be added
added.
Chapter 12
Th
The buyer
b
and
d seller
ll both
b th share
h
the
th risk
i k
of costs.
It is a cross between fixed-price and cost
plus contracts.
The unit price is established but not the
quantity.
The scope of work does not have to
be known.
The total price of the contract is initially
unknown.
Chapter 12
Fixed-price or lump sum contracts

Time and material or unit price contracts
Cost-reimbursable or cost plus contracts
Chapter 12
The seller is reimbursed for actual costs,

plus a profit.
The buyer has the greatest risk for price
unless a ceiling is established on cost
and/or price.
It is used when there is uncertainty about
the project or when the buyer is looking for
a solution rather than a specified product.
I
i
or penalties
l i can be
b included.
i l d d
Incentives
What are some of the components of a

procurement management plan?
Which procurement documents are generally

used with each type of contract?
Concepts
Concepts
Which types of items or work should not be

contracted out?
Concepts
What is the purpose of the contract SOW?
Concepts
Chapter 12
RFB (request for bid), IFB (invitation for

bid) for fixed-price contracts
RFQ (request for quote) for time and
material contracts
RFP (request for proposal) for cost plus
contracts
Chapter 12
Contract types
Procurement documents to be used
Procedure for managing multiple vendors
g make-or-buy
y
Processes for handling
decisions
Outline of requirements for contract WBS
List of prequalified sellers
g
Metrics to be used to evaluate and manage
sellers
Chapter 12
To describe the work the contractor will

provide in enough detail that sellers can
determine whether they can provide the
needed services
Chapter 12
Innovative products
Trade secrets
High-profile products
Products that require strict quality control
Which factors are considered in a make-ormake or

buy analysis?
Concepts
Concepts
Concepts
Concepts
Chapter 12
Cost
Technical ability of the organization to do
the work
Capacity of the organizations facilities
Available personnel
Time required to complete the project
What are some examples

p
of source selection
criteria (a tool and technique for Plan
Procurements)?
Bidder conferences, proposal evaluation

techniques, independent estimates,
procurement negotiations
negotiations, expert judgment
judgment,
advertising, and Internet searches are tools
and techniques for which Project Procurement
Management process?
ITTO
ITTO
Procurement documentation, organizational

process assets updates,
change
and
p
p
g requests,
q
project management plan updates are tools
and techniques for which Project Procurement
Management process?
Selected sellers, procurement contract award,

resource calendars, change
project
g requests,
q
p j
management plan updates, and project
document updates are outputs for which
Project Procurement Management process?
ITTO
ITTO
Chapter 12
Chapter 12
Purchase price
Understanding of need
Financial capacity
References
Management approach
Chapter 12
Chapter 12
What is the formula for price?
Formulas
Formulas
Formulas
Formulas
Chapter 12
Price = Cost + Profit

Price is a business decision about what the
buyer is expected to pay for the services,
product, or result.
Professional Responsibility
Which four g
groups
p of people
p p does the Project
j
Management Institute Code of Ethics and
Professional Conduct apply to?
Concepts
Concepts
What are the four values that the PMI

considers most important for the project
management profession?
How would y
you best describe the vision of the
PMI for its Code of Ethics and Professional
Conduct?
Concepts
What are the two types of standards outlined

in each section of the Project Management
Institute Code of Ethics and Professional
Conduct?
Concepts
Chapter 13
As p
practitioners of project
p j
management,
g
we
are committed to being honorable and doing
the right thing.
Chapter 13
All PMI members

Nonmembers who hold a PMI certification
Nonmembers
N
b
who
h apply
l for
f a PMI
certification
Nonmembers who serve PMI in a volunteer
capacity
Chapter 13
Mandatory
Aspirational
Chapter 13
Responsibility
Respect
Fairness
Honesty
What do mandatory standards describe?
Concepts
Concepts
How would you best describe the mandatory

requirement related to responsibility?
What are the consequences

q
for project
p j
management professionals who do not meet
the mandatory standards?
Concepts
What do aspirational standards describe?
Concepts
Chapter 13
Disciplinary action
Firm requirements
Chapter 13
Conduct you aspire to achieve
Chapter 13
Chapter 13
The duty to take ownership for the decisions

you make, or fail to make
How would you best describe the aspirational

requirement related to responsibility?
Concepts
Concepts

requirement related to respect?

requirement related to respect?
Concepts

requirement related to fairness?
Concepts
Chapter 13
The duty to show a high regard for the

resources entrusted to you
Doing what you say you will do
Chapter 13
The duty to make fair decisions,

decisions act
impartially, and objectively
Chapter 13
Chapter 13
The duty to inform yourself about norms and

customs of others and avoid engaging in
behavior that others might consider
disrespectful

requirement related to fairness?
Concepts
Concepts

requirement related to honesty?

requirement related to honesty?
Concepts
What are the four p

professional and social
responsibilities of project management
professionals?
Concepts
Chapter 13
The duty to understand the truth and always

act in a truthful manner
Chapter 13
Demonstrating complete transparency in your

decision making process
Chapter 13
Ensure individual integrity

Contribute to the project management
knowledge base
Balance stakeholders interests
Respect differences
Chapter 13
The duty to seek the truth
Which event(s) drove the PMI to completely

overhaul its October 1998 Code of Ethics?
Concepts
Concepts
Concepts
Concepts
Chapter 13
Corporate scandals in the United States and

worldwide

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Project Management Concepts

Project Management Concepts

According to the PMBOK Guide

According to the PMBOK Guide